Santader says Banxico will increase corto on Friday.

MEXICO CITY, Jan 7, 2003 (Cronica/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The Bank of Mexico (Banxico) is expected to raise the corto (the daily withdrawal of circulating capital from the money market) once again this week, due to the volatility in the exchange rate and in the hope of controlling inflation during 2003, reported Santander Mexicano.A report presented by the bank predicted 1.2% growth for the Mexican economy and inflation of 5.7% for 2002. "We expect the corto to be raised as an answer to the volatility registered in the exchange market and as an attempt to moderate the inflation expectations for 2003, which would be at 4.2%, slightly above the official target released by the Bank of Mexico," read the report.Santander said inflation for the second half of December would reach 0.16%, totaling 5.7% for 2002, which is 1.2% above the official goal for the year. Underlying inflation is expected to close the year at 3.8%.

URL:              www.securities.com 

Copyright 2003 Internet Securities, Inc., all rights reserved. A Euromoney Institutional Investor Company.

News Provided by COMTEX (http://www.comtexnews.com)